EXPEDITED ADOPTION
Title of Rule: Predecessor-successor transfers through intermediaries.
Purpose: To spell out the transfer of operating assets from one employer to another when an intermediary is used and to set forth the criteria for determining if a predecessor-successor relationship exists.
Statutory Authority for Adoption: Chapters 34.05 and 50.12 RCW.
Statute Being Implemented: Portions of RCW 50.04.320 and 50.29.062.
Summary: To revise the rule to promote clarity and delete archaic language. This rule is being rewritten and renumbered in accordance with recent mandates from the legislature and Governor's Office to remove sections of rules that are difficult to understand and clarify the intent of the rule.
Reasons Supporting Proposal: This rule is being amended in compliance with Governor Locke's Executive Order 97-02.
Name of Agency Personnel Responsible for Drafting: George Mante, 212 Maple Park, Olympia, WA, (360) 902-9642; Implementation and Enforcement: Dale Ziegler, 212 Maple Park, Olympia, WA, (360) 903-9303 [902-9303].
Name of Proponent: Employment Security Department, UI Division, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule has not been changed from the original rule other than to clarify archaic language and to comply with Governor Locke's Executive Order 97-02. This rule should read better to the general public. It should also clarify how the department determines a predecessor-successor relationship when operating assets are transferred from one employer to another by an intermediary.
Proposal Changes the Following Existing Rules: The existing rule is repealed. The new
rule is being renumbered in accordance with Executive Order 97-02 and the department's new
easier system for identifying rules for all users. There is no substantive change to the previous
rule.
THIS RULE IS BEING PROPOSED TO BE ADOPTED USING AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO George Mante, Employment Security Department, UI Tax Administration, P.O. Box 9046, Olympia, WA 98507-9046 , AND RECEIVED BY July 21, 1999.
May 13, 1999
Carver Gayton
Commissioner
When operating assets are transferred from one employer to another by the use of an intermediary, whose function is to arrange, or facilitate, the transfer process (RCW 50.04.320 and 50.29.062) – the existence of a predecessor-successor relationship will be determined on a case-by-case basis by the department. The fact that an intermediary was used does not preclude the existence of a predecessor-successor relationship.
In determining if a predecessor-successor relationship exists, the department will consider the:
a. intent of the parties involved; and
b. economic reality of the transactions, as opposed to the strict legal format of the multiple transfers.
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The following sections of the Washington Administrative Code are repealed:
| WAC 192-12-074 | Predecessor-successor transfer through intermediaries. |